Setback for AAP govt, no CAG audit of discoms’ accounts: Delhi High Court

New Delhi: In a major embarrassment for the AAP government, the Delhi High Court has ruled that the Comptroller and Auditor General of India (CAG) has no power to audit the accounts of power companies. Three private power companies had challenged the AAP government’s decision to get their accounts audited by the CAG in the High Court.

The first AAP government in January last year had ordered CAG audit of the finances of BSES Yamuna Power Ltd, BSES Rajdhani Power Ltd and Tata Power Delhi Distribution Ltd. It had even warned the discoms that their licenses may be cancelled if they do not cooperate with the audit.

In its draft report into financial condition of the three private companies, the CAG had said that the firms inflated their previously-incurred losses.

These firms have been pressing Delhi Electricity Regulatory Commission to allow them to recover the “regulatory assets”. Delhi Chief Minister Arvind Kerjriwal had earlier urged Prime Minister Narendra Modi to intervene and allow cancellation of agreements with power companies, saying they are selling electricity at higher rates.